Mortgage Lenders Are Checking LinkedIn: Here’s How Your Social Media Could Affect Your Chance of Being Approved

With high mortgage rates and home prices, lenders are scrutinizing borrowers with increased intensity. While your bank statements and tax returns still carry the most weight, some lenders are starting to look elsewhere for insights. One of those places? Your digital footprint.

Are lenders actually looking at social media?

Kevin Leibowitz, the president and CEO of Grayton Mortgage, Inc., suggests that lenders may use professional platforms like LinkedIn to verify employment details and assess a borrower's financial narrative. While lenders typically do not scrutinize personal social media platforms like Instagram or Facebook, they might examine a borrower's professional online presence, particularly if there are inconsistencies or red flags in the loan application. This practice is not yet standard but highlights the potential impact of one's digital footprint on how lenders perceive reliability and stability.

What kind of posts raise red flags?

Mike Olson, a senior underwriter at Second Street, says LinkedIn should be consistent with your loan application. That includes matching job titles, employment dates, and locations.

“I'd also avoid posts that could raise red flags, like suggesting a recent job loss, major financial stress, or uncertainty about a move or real estate purchase," he adds.

Shmuel Shayowitz, president and chief lending officer at Approved Funding, emphasizes that lenders generally avoid subjective judgment; but they’ll investigate if something on a borrower's application calls their honesty into question.

Private lenders may also be more likely to take a close look at social media feeds, says Hassan Morcel, CEO of Keys Please Holiday Homes in Dubai. Especially if a borrower is posting about a financial crisis or showing off luxury purchases that don’t match reported income.

Small business owners: a special case

Securing a mortgage as a self-employed individual requires additional documentation and sometimes creative presentation of financial stability. While having an online presence isn't crucial, maintaining an active website with updated client work and testimonials can help demonstrate consistent income for freelancers. For brick-and-mortar businesses, encouraging customer reviews on platforms like Google or Yelp can enhance perceptions of stability and community presence. However, creating an online presence solely for mortgage purposes is not necessary if one doesn't exist.

 

What you can do to protect yourself

It’s a simple rule but a good one—especially in a financial landscape where more data points are being used to assess risk, and algorithms may not always account for nuance.

Here are a few smart steps to take before submitting your mortgage application:

• Google yourself: See what lenders might see with a quick search, and address anything outdated or inaccurate.

• Tidy up your LinkedIn: Make sure your job titles, dates, and locations match the employment history on your application.

• Review public posts: Set personal accounts to private, or at least archive posts that could raise unnecessary questions.

• Clean up your business presence: For self-employed borrowers, update your website, respond to reviews, and make sure your digital footprint reflects an active, legitimate operation.

  
  

Your mortgage approval will still come down to the hard facts on your tax return, credit report, and bank statements. But in an increasingly digital world, what you say and show online can help fill in the story your paperwork tells. And when you’re applying for a six-figure (or larger) loan, that story should be as consistent and credible as possible.

Read more: realtor.com